I haven't bought the 16t yet, but I did drop the rear to 40t. that changed final ratio from 2.876:1 to 2.667:1. It has relaxed rpm at any given speed in each gear. I like it much better now and still will go even taller with a16/40 combo for final drive ratio at 2.50:1.
Note; I have a ktm for the woods, I commute on this KLR and I'm getting 60 mpg on back roads averaging speeds in the 50mph range.
I don't lug my engine, but I do try to run between 2.8k and 4k rpm. Hi-test fuel keeps the spark knock under control.